Life Insurance . . . DENIED

If you have serious health issues, it might be impossible to obtain a life insurance policy. The exception is a graded benefit plan that only returns the premium if death occurs in the first 2 – 3 years.

But once the policy is issued, there should not be a problem, right?

Not so fast!

Life insurance policies have a contestable period that usually runs for 2 years after the policy is issued. So . . .

You could be room temp and your beneficiaries get stiffed. That’s what happened to the family of Andrew Kissel.

Kissel had a $15 million dollar life insurance policy in force the day he died, but the carrier is refusing to pay. He was murdered in 2006 but the carrier has challenged the validity of the application.

The carrier, Northwestern Mutual Life, alleges Kissel submitted a false application, withholding information about his health that was material to the underwriting process.

U.S. District Judge Vanessa Bryant ruled recently that Andrew Kissel signed what he knew were false documents. The ruling entitles Northwestern Mutual Life Insurance Co. to rescind the $15 million policy.

In her ruling, Bryant detailed Kissel’s extensive drug use and the deep psychiatric problems that caused him to see numerous doctors over the years.

At one point Kissel had four doctors writing him prescriptions for five drugs, including Lexapro, Zithromax and Percocet, according to the 15-page summary ruling Bryant issued.

Kissel was on the antidepressant Lexapro when he was killed and had admitted to several of his psychiatrists that he had a history of mental illness and heavy cocaine use, dating from the 1990s, court records show.

When asked on the medical questionnaire for the Northwestern policy whether he was on any medication, he answered, “yes – multiple vitamins.” When asked whether he had been treated for emotional problems or depression, he answered “no.”

Full article  available here online.


  1. Perspn who was scammed says:

    There’s no way his wife didn’t know that he was falsifying documents . Where did she think all the money was coming from for their houses, boats, and cars? She does not deserve the insurance. Maybe he wasn’t big time like Madoff, but he hurt alot of people.

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